Abstract
The increase of fast completion and cost certainty demands of construction projects were encouraging the Provincial Government of DKI Jakarta to use the design-build as a project delivery system. However, the design-build project experienced several constraints. This research aimed to determine the effect of external risks (consist of land acquisition, utility disruption, and third-party risk) on project performance of infrastructure design-build projects with a lump-sum contract system. A mix-method of quantitative and qualitative approaches used in this research, with data collected by using a questionnaire, interview, and documentation study. The questionnaire sent to contractors involved in design-build contracts for the 2015-2018 period, as many as 78 respondents from 39 projects. Fifty responses received within the stipulated time. Quantitative data analysis carried out by using the Structural Equation Model (SEM) based on Partial Least Square (PLS) using SmartPLS and qualitative data used as supporting data. The research findings were as follows. First, land acquisition, utility disruption, and third-party risk had no significant effect on project time performance. Simultaneously, the external risk contributed 11.7% of the time performance variable. Second, the utility disruption and third-party risk requests had a significant negative effect on cost performance, while the land acquisition risk did not have a significant effect on cost performance. Simultaneously, the external risks contributed to 39.3% of the cost performance. Third, time performance has a positive and significant effect on cost performance. Fourth, there was inadequate and inaccurate information related to the existence of the external risk, as well as an inadequate allocation of risk handling costs. Risk identification was vital. Furthermore, working schedules had to synchronize to the risk management schedule in such a way that the effectiveness and efficiency of the work could be maximized by considering all aspects. The response to risk could differ from project to project even between the same types of construction projects. The risk response determined by considering their impact on the project's time and cost performance.
Highlights
The demands of fast completion and cost certainty of construction projects are increasing
Demography of the Respondents Based on the completed questionnaire sets, the demography of the respondents presented in Table-III
There was no external risk that had a significant effect on time performance
Summary
The demands of fast completion and cost certainty of construction projects are increasing It encourages the Provincial Government of DKI Jakarta, Republic of Indonesia, to use the design-build as a project delivery system. A study of 351 projects in 37 states of the USA showed some benefits of the design-build method compared to the traditional method. The design-build project's implementation in DKI Jakarta Province has shown non-optimal results. It indicated several delays in projects' completion, both in the construction of buildings and civil buildings (infrastructure). Similar delays occurred in infrastructure construction projects In this case, as many as 13 (81.25%) infrastructure design-build projects in 2015-2017 having late completion of work, as depicted in Table-I
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